In competitive markets,
factor inputs are sold at "market" prices. If market is not
perfectly competitive, factor prices will be lower, all other things
being equal, than they would be in a perfectly competitive case.

Activity

Use the MLB: Perfect
Competition? data
retrieval chart to determine how MLB meets the criteria for perfectly competitive
market.

Limits on the
number of buyers for players factor inputs (labor): only 30 teams
in MLB; limits on the amount of factor inputs clubs can buy (25 player
rosters)
(http://www.majorleaguebaseball.com/)

Uniform Player Contracts:
amateur players must be drafted by MLB clubs. Players must sign with team
that drafts them and play for 5 years. Cannot negotiate with other clubs while
under contract. Free agency is only available after 3 full years in MLB.